Forex Trading
Trade the world's largest and most liquid financial market
What is Forex Trading?
Forex (Foreign Exchange) trading involves buying one currency while simultaneously selling another. Currencies are traded in pairs, and traders profit from changes in exchange rates. The forex market is the largest financial market globally, with over $7.5 trillion traded daily.
How It Works
- • Currencies traded in pairs (EUR/USD)
- • Base currency vs quote currency
- • Buy if expecting base to strengthen
- • Sell if expecting base to weaken
- • Profit from exchange rate changes
Key Concepts
- • Pip: Smallest price move (0.0001)
- • Spread: Bid-ask difference
- • Lot: 100,000 units standard
- • Leverage: Trade with borrowed capital
- • Margin: Required deposit
Currency Pairs
Major Pairs
Most traded pairs with USD
EUR/USD
Euro/US Dollar
USD/JPY
US Dollar/Japanese Yen
GBP/USD
British Pound/US Dollar
USD/CHF
US Dollar/Swiss Franc
Minor Pairs
Cross-currency pairs without USD
EUR/GBP
Euro/British Pound
EUR/JPY
Euro/Japanese Yen
GBP/JPY
British Pound/Japanese Yen
AUD/CAD
Australian/Canadian Dollar
Exotic Pairs
Major currency with emerging market
USD/TRY
US Dollar/Turkish Lira
EUR/ZAR
Euro/South African Rand
USD/MXN
US Dollar/Mexican Peso
GBP/SGD
British Pound/Singapore Dollar
Forex Trading Sessions
Sydney Session
5:00 PM - 2:00 AM ET
Lower volatility, AUD/NZD active
Best pairs to trade:
Tokyo Session
7:00 PM - 4:00 AM ET
JPY pairs most active, moderate volatility
Best pairs to trade:
London Session
3:00 AM - 12:00 PM ET
Highest volatility, most liquidity
Best pairs to trade:
New York Session
8:00 AM - 5:00 PM ET
High liquidity, USD pairs active
Best pairs to trade:
Session Overlaps (Best Trading Times)
- • London-New York: 8:00 AM - 12:00 PM ET (Most volatile)
- • Sydney-Tokyo: 7:00 PM - 2:00 AM ET (Asian session)
- • London-Tokyo: 3:00 AM - 4:00 AM ET (Brief overlap)
Why Trade Forex?
24/5 Market
Trade anytime during weekdays
High Liquidity
$7.5 trillion daily volume
Low Costs
No commissions, tight spreads
Leverage Available
Up to 50:1 in the US
Two-Way Market
Profit from rising or falling
Global Access
Trade worldwide currencies
How to Start Forex Trading
Choose a Forex Broker
Select a regulated broker with tight spreads and good platform
Compare Forex Brokers →Popular Forex Strategies
Scalping
Make multiple quick trades for small profits. Requires tight spreads and fast execution.
Day Trading
Open and close positions within the same day. Focus on session overlaps.
Swing Trading
Hold positions for days to weeks. Less time-intensive than day trading.
Carry Trade
Profit from interest rate differentials. Buy high-yield, sell low-yield currencies.
What Moves Forex Markets
Economic Factors
- • Interest rate decisions
- • GDP growth rates
- • Employment data (NFP)
- • Inflation reports (CPI)
- • Trade balance
- • Central bank policies
Technical Factors
- • Support and resistance levels
- • Chart patterns
- • Moving averages
- • Fibonacci retracements
- • Momentum indicators
- • Market sentiment
Forex Trading Risks
Common Risks
- • High leverage can amplify losses
- • Market volatility from news events
- • Weekend gaps
- • Broker counterparty risk
- • Slippage during fast markets
Risk Management
- • Use stop-loss on every trade
- • Limit leverage to 10:1 or less
- • Risk only 1-2% per trade
- • Avoid trading during major news
- • Choose regulated brokers only